Egypt-based venture capital firm, Sawari Ventures, is gearing up to launch its second fund, “Sawari Ventures II,” in early 2025 with a target of raising $200 million. This new fund marks an ambitious step forward for the firm, which aims to expand its reach across the African continent while deepening its support for Egypt’s burgeoning startup ecosystem.
According to a report from Launch Base Africa, Sawari Ventures II will build on the success of its first fund, widening its investment scope to new sectors and regions. The $200 million fund will be split into two components. The first will be an Egypt-focused fund designed to mobilize local capital, while the second will attract international investors and development finance institutions. These international funds will be used to support startups across Egypt, Tunisia, Morocco, Kenya, and West Africa, signifying a strong regional focus across North and Sub-Saharan Africa.
Allocations and Investment Focus
Of the total $200 million, approximately 70%, or $140 million, will be allocated to Egyptian startups over the next four to five years. This highlights Sawari’s commitment to nurturing Egypt’s startup ecosystem, which has seen substantial growth in recent years. The firm plans to channel most of the fund towards Series A and B stage startups, while also reserving a portion for seed-stage investments.
Sawari Ventures II will target key sectors including financial technology (fintech), deep technology, digital education, health technology, climate technology, and agricultural technology. These industries align with the firm’s long-term strategy to diversify its portfolio and invest in areas with strong growth potential and the ability to generate significant social and economic impact.
Strengthening Cross-Border Partnerships
One of Sawari Ventures’ notable recent developments is its partnership with Bpifrance, France’s largest venture capital firm. This collaboration has already led to Bpifrance establishing a presence in Egypt, a move aimed at fostering closer ties between Africa, the Middle East, and France. Through this partnership, both firms hope to enhance innovation, facilitate talent exchange, and improve access to capital for startups on both continents.
Bpifrance’s entry into the Egyptian market is also part of a larger strategic vision to create opportunities for French companies entering African markets and African startups seeking research and development (R&D) opportunities in France. By creating these cross-border collaborations, Sawari Ventures is positioning itself as a central player in connecting African innovation with international markets and resources.
Expanding Regional Footprint
The success of Sawari Ventures’ first fund, which provided crucial support to Egyptian startups, has given the firm the momentum to broaden its regional footprint. Sawari Ventures II aims to replicate this success by expanding into North and Sub-Saharan Africa, focusing on countries with vibrant startup ecosystems such as Tunisia, Morocco, and Kenya.
Through its targeted investment in high-growth sectors and cross-border partnerships, Sawari Ventures hopes to catalyze the next wave of technological and economic development in Africa. By doing so, the firm will not only support the growth of local startups but also help position Africa as a global hub for innovation.
A Vision for Africa’s Startup Future
As Sawari Ventures prepares for the official launch of its second fund, the African startup ecosystem stands to benefit from a significant influx of capital and expertise. The firm’s strategic investments in fintech, digital education, health tech, and other critical sectors are set to drive economic advancement across the continent.
With a clear focus on fostering innovation and strengthening ties between Africa and international markets, Sawari Ventures is positioning itself at the forefront of Africa’s venture capital scene. The firm’s upcoming fund launch represents not just an opportunity for local startups but a milestone in the ongoing transformation of Africa’s tech and startup landscape.
In February 2024, Sawari Ventures also announced plans for a $150 million investment fund aimed specifically at supporting Egyptian startups. Together, these initiatives will provide a strong foundation for the next generation of entrepreneurs in Egypt and beyond.
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